Business Insider: How pure gold is refined

[VIDEO] Must be nice to have enough money to not only buy gold, but to also make them into any shape you choose. Especially as I can only dream about bars or coins. BTW, I wonder what is the current price of gold per ounce?

And funny thing, I was somewhat interested in bitcoin and yet I've lost interest quick. So many things to invest your money in, what does one choose. Better to invest in precious metals than something that can be as non-secure as cryptocurrency.

Silver!

I have an interest and have a lot to learn about buying silver. It's an easy investment to make, but it's something that one must do their homework on. Besides my concern when it comes to buying this precious metal is whether or not one finds themselves buying a fake from an unscrupulous seller.

Another concern I have is getting the best deal in purchasing silver. I don't make enough money as it is anyway and that means making my money count on such investments. Is it important to own silver and pay more than necessary to own such a precious metal.

In looking up any advice on this subject the main suggestion anyone has on buying this precious metal is to shop around for the best deals. As stated earlier do some homework! That's my current plan so far and just as everyone else hopefully I can find the best deals for me!

BTW, I got to get a handle on silver as a hedge against inflation. Besides the economy isn't doing so great right now and items do cost money. Still it's great to know that money is held up in something and the longer you hold that silver hopefully the more value it had when it's time to have to exchange it for cash money.

So should states be able to create their own gold & silver based currencies?

An old friend talked about this frequently since he's a proponent of using primarily precious metals as currency and not merely fiat currency. It looks like some states are considering his advice at least. This article is from February 2012 but might as well share it on this Sunday:

Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

"In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System ... the State's governmental finances and private economy will be thrown into chaos," said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year.

Unlike individual communities, which are allowed to create their own currency -- as long as it is easily distinguishable from U.S. dollars -- the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make "gold and silver Coin a Tender in Payment of Debts."

To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law. And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state lawmakers, he said.

If it happens in Illinois, my friend may not like the fact that Illinois could use on their precious metal based currency Abraham Lincoln. He's not a fan although I'm sure there are other state figures that my state could put onto such currency. Although granted I'm not sure this state would adopt their own currency.

Here's the section of the constitution which concerned money in this nation. Article 1, Section 8 among the powers of the United States Congress: "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"

Gold....

I feel awkward attempting to explain some rough understanding of economics but luckily my mother is a banker so therefore there were some rough concepts that she could corroborate. If you are even more of an economics geek feel free to challenger my conclusions!

So I was watching this episode of Pawn Stars ("Buy the Book" aired on June 6, 2011) recently where an older gentleman was looking to sell a 1930s Lincoln automobile. The Harrisons and this man just weren't coming together on a price until Rick Harrison just outright asked what this gentleman wanted to make a deal. What he wanted was some gold.

They made a deal for the right price but with gold as part of the deal. So Rick Harrison explains that he can't exchange gold for the car. What he did offer was cash for the car and then gold for the cash.

It wasn't explained during the course of the episode why Rick Harrison arranged the deal in that fashion. Although I do figure that this may have been a tax issue for his pawn shop at the very least. There are probably some business things going on there too but with all that gold basically all Eagles and Krugerrands gold coins, the old gentleman trading his antique car made out quite well.

Then it brought back some history I've learned over the past few years. Once upon a time America was on the gold standard and that determined the value of the dollar. In the Great Depression, the Roosevelt administration wanted to buy/confiscate all gold in order to devalue the dollar. I suppose in this way they wanted to stop people from trading gold/silver and affect the value of the dollar. In any case by the 1970s, America was no longer on the gold standard and the dollar is currently a fiat currency. The value of the dollar is according to the interest rates set by the Federal Reserve.

I also thought about an executive order signed by President Franklin D. Roosevelt. In 1933 this executive order criminalized the possession of gold by individuals, corporations, associations or partnerships. This executive order was replaced by the Gold Reserve Act in 1934. That legislation effect made gold clauses in private contracts illegal and they were necessary in order to protect against he US Government devaluing the currency. Although now it's legal to possess, purchase, and trade for gold.

Also, I look forward to the day when I can purchase gold so that I can use it to trade or sell. Gold is a good investment in these uncertain times. Even better it would be nice to store them in a safe deposit box at a bank for safe keeping.